State-owned oil giant expected to tender engineering services for offshore facilities to GES plus contractors
Saudi Aramco is planning to tender the engineering services contract that makes up the majority of its maintain potential programme (MPP) for its offshore facilities in June or July of 2012.
Australia’s WorleyParsons is the current holder of the MPP contract and has 350 personnel working in the Eastern Province. The introduction of the general engineering services plus (GES plus) by Aramco means that the oil giant might now give the work to several companies.
“The GES plus contract has been a big game changer in the kingdom as it has meant five companies have had to increase their local engineering capability massively over the last year,” says an oil industry source working in Saudi Arabia. “Aramco needs to provide these companies with adequate work so using some of the MPP hours to do this is one way of achieving this.”
The GES plus contract has been designed by Aramco to give Saudis engineering and project management consultancy experience by keeping the work in the kingdom. Five international companies have established joint ventures with local engineering consultancies and will work on major projects for Aramco in-kingdom.
The US’ Jacobs Engineering, Mustang Engineering and KBR have completed registration for GES plus, while the US’ Foster Wheeler and Canada’s SNC Lavalin are expected to complete registration within the next few months.
The original MPP deal between Aramco and WorleyParsons was signed for seven years, but was extended to nine. WorleyParsons are understood to be eager to sign another two-year extension if one is offered by Aramco, but this is likely extremely unlikely.
Since 2003, the work WorleyParsons has delivered includes 40 new platforms, 85 platform upgrades, 165km of pipelines, 100km of submarine power cables, five cranes and more than 300 well hook-ups.
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